Trade finance in need of improvement in Asean

Singapore

ASIA'S heavy dependence on letters of credit to finance trade leaves significant unmet needs especially among small and medium-sized enterprises (SMEs), according to the latest report by Milken Institute.

The Asian Development Bank (ADB) has, for instance, reported a growing rejection rate of funding requests from Asia, especially among SMEs. The ADB estimates that unmet global demand for trade finance in developing Asia could have been as high as US$1.1 trillion in 2013.